Agriculture And Processed Foods Export Promotion Scheme Of APEDAScheme StatusScheme Status

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The Agriculture and Processed Foods Export Promotion Scheme of APEDA is an export promotion initiative administered by APEDA under the Ministry of Commerce and Industry. It is implemented during the 15th Finance Commission cycle (2021-22 to 2025-26) and is aimed at facilitating the export of agricultural and processed food products. The scheme provides financial assistance to address various challenges faced by agri-exporters and supports the development of export infrastructure, quality enhancement, and market development.

Objectives

  • Export Facilitation: Assist exporters in overcoming challenges and achieving APEDA’s export objectives.

  • Infrastructure Development: Establish modern export infrastructure for both fresh and processed food products, thereby reducing post-harvest losses and ensuring product quality.

  • Quality Enhancement: Support initiatives for quality development by implementing and certifying food safety and quality management systems, as well as standardizing products to meet international standards.

  • Market Development: Promote new market and product development, facilitate trial shipments, and support the registration of brands and IPRs to boost export potential.

Scheme Components

1. Development of Export Infrastructure
This component focuses on building robust infrastructure for agro-industries to support the export of agricultural products. It covers:

  • Post-Harvest Handling Facilities: Assistance for packhouse facilities, packing and grading lines.

  • Cold Chain and Logistics: Support for pre-cooling units, cold storage, and refrigerated transportation to minimize spoilage.

  • Specialized Infrastructure: Facilities such as cable systems for crops (e.g., bananas), common infrastructure, and pre-shipment treatment facilities (irradiation, Vapour Heat Treatment, Hot Water Dip Treatment) to meet phytosanitary requirements.

  • Processing Facilities: Infrastructure support for processed food products, including equipment like X-ray systems, sorters, detectors, and other technologies essential for ensuring food safety and quality.

2. Quality Development
This component ensures that exported products comply with stringent international food safety standards and Maximum Residue Levels (MRLs). Key aspects include:

  • Certification & Compliance: Implementation and certification of quality and food safety management systems.

  • Standardization & Harmonization: Aligning domestic products with global standards.

  • Technology Integration: Adoption of advanced technologies (e.g., handheld devices, blockchain, AI) for traceability and quality control.

  • Financial Assistance: Assistance is provided up to 50% of the total cost with specific ceiling limits (e.g., up to ₹5 lakh for certain certifications and up to ₹20 lakh for procuring high-precision devices).

3. Market Development
This component is designed to enhance the global competitiveness of Indian agri-products through:

  • Feasibility Studies: Funding for studies on new market or product development. Assistance may be up to 50% or 75% of the total cost subject to a ceiling of ₹10 lakh per study, with higher support for beneficiaries in special categories (North-Eastern States, Himalayan, landlocked areas, Island UTs, SC/ST, and women).

  • Trial Shipments & Brand Registration: Assistance for trial shipments, multimodal transport, and registration of brands/IPRs. Support levels may vary from 50% to 100% of the total cost, subject to specified ceilings.

  • APEDA Initiated Activities: Activities directly initiated by APEDA are fully funded.

Benefits and Financial Assistance

  • Development of Export Infrastructure:

    • Financial assistance is provided up to 40% (or in some cases up to 90% for specific components) of the approved cost with ceiling limits, for example, a ceiling of ₹200 lakhs under certain components.

  • Quality Development:

    • Assistance covers up to 50% of the total cost for quality development initiatives, with designated ceilings for various items.

  • Market Development:

    • Assistance percentages vary (50% to 75% or 100% for APEDA-initiated activities) with set ceiling amounts per beneficiary.

Note: The scheme’s financial assistance is subject to budgetary allocations, actual fund availability, and specific conditions laid out by APEDA.

Eligibility

  • Eligible Beneficiaries:

    • APEDA registered exporters.

    • Certification bodies accredited under the National Program for Organic Production (NPOP).

    • Central/State Government agencies, trade bodies, Chambers of Commerce, and Indian missions abroad.

    • Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Farmer Producer Companies (FPCs), cooperatives, and individual farmers.

    • Listed laboratories involved in the processing and export of agricultural products.

  • General Conditions:

    • The application date as recorded in the APEDA online portal is considered the date of receipt.

    • Expenditure incurred prior to submission of the online application is not eligible.

    • Exporters in special categories (North-Eastern states, Himalayan, landlocked, Island UTs, SC/ST, and women) are eligible for higher assistance percentages (up to 75%).

    • Applicants must comply with additional documentation and technical requirements (e.g., obtaining quotations from a minimum of three suppliers for new equipment, submission of detailed project reports, certified financial statements, etc.).

    • Applicants must be registered under APEDA and possess the necessary regulatory approvals (e.g., FSSAI registration).

Application Process

Online Application:

  1. For Government, PSUs, and Others:

  2. For Exporters:

Submission Guidelines:

  • The online application must be accompanied by a physical submission of the required documents within 30 days of the online application. Failure to do so may result in cancellation.

  • Applicants must ensure all documents are duly signed by the Competent Authority or an authorized signatory. Documents in regional languages should include a self-certified translation in English or Hindi.

Documents Required

  • Project Documents:

    • Detailed Project Report (DPR) as per Annexure I.

    • Chartered Engineer Certificate and/or technical appraisal certificates.

    • Appraisal note from the lending Bank/Financial Institution (if applicable).

  • Company/Entity Documents:

    • Certificate of incorporation/registration, Memorandum and Articles of Association (or Bye-laws) for companies.

    • Annual reports and audited financial statements for the last two years.

  • Land and Infrastructure:

    • Self-attested English/Hindi copies of main facility land documents or land lease agreements with a minimum remaining period of 15 years.

    • CLU (Change in Land Use) permission from the competent authority.

  • Quotations and Estimates:

    • Three quotations from suppliers for plant, machinery, and equipment.

    • Detailed cost estimates and Bill of Quantity for civil work (certified by a Chartered Engineer or Civil Architect).

  • Regulatory Approvals:

    • Necessary permissions from Central/State statutory bodies for facility setup.

    • FSSAI registration and other relevant licenses.

  • Financial Documents:

    • Copy of the term loan sanction letter (if applicable).

    • Layout diagrams/drawings of the project approved by a Chartered Engineer.

  • Additional Declarations:

    • Declaration regarding non-availment of similar assistance from any other agency.

    • Other supporting documents as specified in the guidelines.

Frequently Asked Questions (FAQs)

  • What is APEDA?
    APEDA (Agricultural and Processed Foods Export Development Authority) is the export promotion body under the Ministry of Commerce and Industry that promotes the export of agricultural and processed food products.

  • What are the main components of the Financial Assistance Scheme?
    The scheme comprises three major components: Development of Export Infrastructure, Quality Development, and Market Development.

  • What are the general requirements across all components?
    Eligibility includes being a registered exporter or organization under APEDA, adherence to project cost ceilings, submission of complete documentation, and compliance with regulatory approvals.

  • How is the application processed and what documents are required?
    The application is submitted online through designated portals. It must be supported by detailed project reports, technical appraisals, financial statements, land documents, supplier quotations, and requisite regulatory approvals.

  • Are there any specific conditions regarding equipment purchases?
    Yes, for new equipment, quotations must be obtained from at least three OEMs or authorized dealers, and APEDA’s assistance is based on the lowest quoted rate.

  • What are the exclusions for the scheme?
    Members not registered with APEDA are not eligible. Also, expenditures incurred before online application submission are not considered, and any change in ownership without updating the APEDA RCMC may affect eligibility.

  • What is the reimbursement process?
    Reimbursement is back-ended, subject to completion of the project, submission of all claim documents, and physical verification by APEDA.

Sources and References

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